Trenton's new director of housing and economic development holds spotty business record

TRENTON — Carmen Melendez, the city’s newly appointed acting director of housing and economic development, and her husband owe more than $50,000 in unpaid local and federal taxes, recently obtained documents show.

According to the city’s tax office, Melendez’s husband, Cesar, owes close to $45,000 in taxes on a property he owns on the 1300 block of South Broad Street, while records from the Mercer County clerk’s office show the couple owe more than $10,000 in unpaid federal taxes.

The South Trenton property, which served for several years as headquarters of Melendez’s now defunct-real estate business, saw $6,300 worth of unpaid taxes sold to banks and other collection agencies in three transactions between August 2008 and June 2011, records show.

The South Broad Street property had been in Carmen Melendez’s name until 2008, when it was deeded to her husband for one dollar.

Melendez, who’s served as an aide under Mayor Tony Mack since he took office last July, was named earlier this month to serve as acting director of housing and economic development in place of Walter Denson, who was confirmed for the position by city council in March.

Denson, an attorney, is now serving as acting director of law after several resignations in that department.

Melendez worked on Mack’s mayoral campaign in 2010, and records filed with the state Election Law Enforcement Commission show that her husband donated $3,700 to Mack’s election coffers, more than the $2,600 limit on individual contributions per election cycle.

In a statement sent to reporters yesterday afternoon, Melendez said her real estate business had been a victim of the housing bubble burst and claimed that much of the debt was old.

“All of the debt incurred was from years ago,” she said. “Unfortunately, due to the downturn in our local real estate market I was forced to close my family business. I have been through hard times just like many other small businesses in our nation. This experience makes me even more sensitive to the needs of our community.”

Some members of city council, however, were not so sympathetic.

“It is very troubling,” at-large Councilwoman Phyllis Holly-Ward said. “You should be an example of the work that you do. If you’ve been through all these problems, you couldn’t possibly have anything to offer us. She should step down immediately.”

Records show that three real estate businesses she was principally involved in over the course of the last decade each folded.

According to state records, she founded Melendez Realty, based out of the 1300 South Broad Street address, in 2007, but had its business certificate revoked after the company failed to file annual reports with the state for two consecutive years. A real estate license associated with the business has been inactive since April 2010.

She likewise founded Melendez Realty Services out of the same South Broad Street address in March 2004, but saw its business certificate similarly revoked after annual reports were never filed. The realty license for the company went inactive in January 2008, records show.

Melendez is actively licensed as a realtor and is listed as a salesperson with Padalino Realty & Auction in Hopewell Township, records show.

Reached by phone, Aggie Popczyk, the owner and broker-of-record with Padalino, said that Melendez had reached out to her about a year ago to ask if Padalino could sponsor her real estate license.

Popczyk said she wasn’t sure how Melendez knew about Padalino, and that Melendez was never considered an employee with the company.

“I really don’t know her, I only met with her once,” Popczyk said. “At this point she’s really not any benefit to our office; it’s more of a benefit for her so she can have a license.”

Since placing her license with the company, she added, Melendez conducted only one real estate transaction.